Lowtax Network

Back To Top

Your Lowtax Account

Malaysia company registration

Healy Consultants Group PLC
10 March, 2014

In the past few years, Malaysia has become an ideal location for a regional headquarters. Located in the centre of South East Asia, Malaysia is in close proximity to many leading Asian markets such as Singapore, Vietnam, Thailand, China, and India. There are many advantages to setting up a business in Malaysia, such as:

1.    A foreign owned company can invest in every business sector without restriction;

2.    Because of the abundance of cheap raw materials and skilled labour, Malaysia’s reputation as a manufacturing hub is growing considerably. The country is rich in several natural resources such as palm oil, rubber, timber, oil, and tin;

3.    Due to Malaysia’s vast amount of natural attractions, Malaysia is labelled as a ‘destination full of unrealized potential’ by the World Travel & Tourism Council (WTTC). Therefore there is lots of growth potential in the Malaysian tourism industry which foreign investors can tap into with Malaysia business setup;

4.    With 4 major ports, and an ideal location on the straits of Malacca, Malaysia is an excellent location for trade by sea;

5.    Malaysia boasts 5 free zones offering foreign companies no custom duties, and flexible trading law. The 5 free zones are Pasir Gudang, Port Klang, Port of Tanjung Pelepas, Kulim Hi-Tech Park, and Bayan Lepas;

6.    After Malaysia company registration, a company is allowed to have various business activities. Depending on your company’s business activities, you may need to obtain one or more business licenses after you have incorporated your company in Malaysia but before commencing your business operations with the local authorities;

7.    Malaysia is a cheaper alternative to Singapore. The average wage in Malaysia is more affordable than in Singapore. In 2012, the average wage in Singapore was US$ 3,245 whilst the average wage in Malaysia was only US$2,310;

8.    To rival the successful Singapore tourism sector, Malaysia is aggressively building hotels, amusement and theme parks, shopping malls, luxurious residential complexes, art galleries, and museums. By the end of 2014, Malaysia is expecting to attract nearly 29 million tourists

Foreigners who plan to invest in Malaysia should be aware of the following regulations:

1.    According to the Malaysia Company Act on Malaysia corporate formation, a Malaysian company must have at least two directors who is “ordinarily resident in Malaysia” i.e. Malaysia Citizen, Malaysia Permanent Resident, or a person who has been issued an Employment Pass and must be above the age of 18 years for Malaysia company setup;

2.    Each company must appoint a Malaysia company secretary during Malaysia business formation;

3.    For Malaysia business formation, each company must have a registered office in Malaysia;

4.    A Malaysia company is required to keep its accounting and other records to explain the transactions and financial position of the company and to allow a profit and loss account and balance sheet to be prepared;

5.    As a director of the company, one shall disclose to the company i) any material personal interest they have in a matter which relates to the affairs of the company ii) any other interest which the director believes is appropriate to disclose in order to avoid an actual conflict of interest or the perception of a conflict of interest;

6.    Each time a change occurs in the particulars of the company or to its officers when starting a company, the change must be lodged with the Malaysian companies registry;

7.    Not all sectors in Malaysia allow 100% foreign ownership for a Malaysia company;

8.    The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. During this 6-month period, it is mandatory to maintain a resident company secretary and a legal registered office;

Being a member of the ASEAN, companies operating in Malaysia can benefit from the free trade agreements that exist between the member states. In addition, Malaysia’s continuous economic growth is reflected by the average GDP Growth for the past 10 years of 1.17%. This continuous growth opens up more opportunities for entrepreneurs. 


Tags: Asia | Taxation | Business


About the Author


Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com

 

 

« Go Back to Blogs

Blog Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »